Labor Unions

question 45

Multiple Choice

Labor unions

• A)prefer to operate in states with right-to-work laws.
• B)are similar to cartels.
• C)play a larger role in the current U.S.economy than in European countries such as Norway and Sweden.
• D)attract a membership of about 25 percent of current U.S.workers.

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Definitions:

Real Gross Domestic Product

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a specific period.

Planned Investment

Expenditures intended by businesses to purchase physical capital goods, which are expected to produce future benefits.

Spending Multiplier

The ratio of change in aggregate output (or income) to a change in spending that caused the change, showing how initial spending leads to increased total spending.

Autonomous Investment

Investment that does not change in response to alterations in the overall economy or income levels, such as public infrastructure investments.